EU agreed on MiCA regulation to crack down on cryptocurrencies and its upcoming policy framework will be to crypto what GDPR was to privacy as Dante Disparte added so let’s read more today in our latest cryptocurrency news today.
The officials from the EU agreed on landmark laws that will make it a little harder for crypto issuers and service providers under a new regulatory framework. The European Parliament member Stefan Berger was the person appointed to report on proceedings related to the bill and broke the news saying that a balanced deal was struck and made the eU the first region with crypto-asset regulation.
MiCA Trilog: Durchbruch! Europa ist der erste Kontinent mit einer Krypto-Asset Regulierung. Parlament, Kommission & Rat haben sich auf ausgewogene #MiCA geeinigt. Für mich als Berichterstatter war wichtig, dass es hier keine Verbannung von Technologien wie #PoW gibt /1
— Stefan Berger (@DrStefanBerger) June 30, 2022
The EU agreed on MiCA regulation known as the Markets in Crypto Assets framework as the provisional agreement includes rules which will cover the issues of unbacked crypto assets, trading platforms, stablecoins, and wallets where crypto is held. The French Minister for the Economy, Finance, and Industrial and Digital Sovereignty Brune Le Maire claimed the regulation will put an end to the crypto wild west. In the wake of the collapse of TerraUSD, the regulation aims to protect consumers by requesting stablecoin issuers to build up enough liquid reserve and the member of the EU parliament Ernest Urtasun explained tht reserves will have to be operationally segregated and insulated and fully protected in case of insolvency.
Crypto Twitter user already branded the regulation as unworkable with the daily volumes of Tether being at $50.40 billion and USDC at $5.66 billion. There will also be difficulty enforcing these rules for the stablecoins like DAI and the agreement also came on the same day that Circle launched its euro-backed stablecoin. Crypto asset providers will be required to adhere to strict requirements that will be aimed at prot4ectign consumers and can also be held liable if they lose investors’ assets.
2/13 MiCA provide safeguards against cases like the crypto-crash, the collapse of the stablecoin LunaUSD.
— Ernest Urtasun (@ernesturtasun) June 30, 2022
Urtasun explained that the trading platforms will be required to provide a whitepaper for the tokens that don’t have a clear issuer like BTC and will be liable for misleading information. There will also be warnings for consumers about risks and losses related to crypto-assets and rules on fair marketing. Market manipulation and insider trading are of focus as per the statement from the EU Council:
“MiCA will also cover any type of market abuse related to any type of transaction or service, notably for market manipulation and insider dealing.”
The provisional agreement will see the crypto asset service providers needing authorization in order to operate in the EU and the new law doesn’t include a ban on PoW technologies or include an NFT within its scope.